CORN

• Sep up 5 @ 5.52 & Dec up 7 @ 5.52
• Corn used in ethanol production expected to be 448M bu for June
• As of July 27, Managed Money long 228K contracts
• Lowest domestic supply keeps prices on the rise in Brazil
• Dryness & frost have created undue stress for filling corn in Brazil
• In US – 60-65% of growing areas still short on moisture
• Preliminary changes in futures open interest as of 7/30, up 2,064 contracts

SOYBEANS

• Aug up 2 @ 14.16 & Nov up 1 @ 13.50
• June soybean crush estimated to be 162M bu, 8.6% down from a year ago
• As of July 27, Managed Money long 94K contracts
• Recent showers benefit much of Midwest, but drier this week
• Plunging palm oil market adds pressure to futures
• COVID-19 resurgence in China is concerning for traders
• Preliminary changes in futures open interest as of 7/30, up 796 contracts

WHEAT

• Sep wheat up 21 @ 7.25, Sep KC up 26 @ 6.99, Sep MNPLS up 9 @ 9.14
• As of July 27, Managed Money long 3K Chi & 31.7K KC contracts
• Russian ag analysts lower wheat production forecast to 78.5M tonnes
• Hot, dry conditions further deteriorate Alberta crops
• Any rains in the US are falling too little too late
• Favorable growing conditions for northern & eastern Europe
• Preliminary changes in futures open interest as of 7/30, up 7.156 contracts SRW

CATTLE

• Aug LC up 0.17 @ 122.25 & Aug FC up 0.82 @ 159.00
• Packers may not increase bids until they see early demand
• Boxed beef continues to rally ahead of Labor Day
• Cash trade light last week – 1.00 higher in the South
• Cattle slaughter projected at 118K
• Feeder Cattle Cash Index for July 29: up 0.04 @ 154.04

HOGS

• Aug hogs up 1.00 & Aug pork cutout up 0.85 @ 120.10
• Cash prices continue to weaken – futures rally despite that fact
• ASF being found in the Dominican may become old news this week
• Is China looking for cheaper prices or is their internal supply sufficient?
• Hog slaughter projected at 419K
• Cash Lean Index for July 28: up 0.08 @ 112.02

Author

Amberlee Bratcher